Payday lending legislation bad for consumers

September 26, 2012

I was dismayed to learn that state legislators in Pennsylvania may vote to authorize predatory payday lending in the commonwealth.

Should House Bill 2191 pass, it will legalize high-cost loans at more than 300 percent annual interest that will be peddled in storefronts and over the Internet to our economically vulnerable. Pennsylvania has been a national leader in stopping predatory lending with a strict usury limit of about 24 percent annually. Should HB 2191 pass, these protections will disappear and many consumers could find themselves in an endless cycle of fees and mounting debt.

Many agencies and faith-based groups that are committed to helping families in need are speaking out against HB 2191 because they experience firsthand the financial and emotional misery such predatory businesses inflict on their communities. My hope is that our state senators will stand up for our communities and keep Pennsylvania free of abusive payday loans. Get involved. Call your senator. Learn more at http://www.stoppaydayloanspa.com. As we work to recover from an economic crisis, the last thing citizens of the commonwealth need is 300 percent interest rate debt.